From my understanding yes. This is meant to prevent the people with the most money and tech access from claiming all the names the first day they can. This is understandable, but I think it should be increased a bit to at least 5. I also think it makes sense to make sure certain people/groups can't claim all the valuable names. There should be a cap on the number of premium name extensions one can own.
RE: Name Bidding and Premium Names on EOS